Man’s Best… Crypto? How Dogecoin Could Become “The Peoples’ Money”

Dogecoin to the moon

Dogecoin to the moon

According to the American Kennel Club, the Shiba Inu is an ancient breed of dog “…named after its history as a hunter in the rugged mountains of Japan.” In modern times, it also happens to be the face of an $81 billion dollar cryptocurrency named Dogecoin. The crypto asset’s meteoric rise owes its 9537% YTD (as of 05/04/21) gain to Kabosu, the original “Doge” that went viral in 2010. Admittedly, beyond its sensationally cute mascot and absurd catchphrases like “wow much coin,” “how money,” “so crypto,” “plz mine v rich very currency,” DOGE’s underlying value proposition is dubious. 

Of course, Dogecoin’s lightheartedness appears to be its greatest virtue. The crypto asset ecosystem is intimidating, veiled behind jargon that blurs the lines between finance, computer science, governance, and even religious fanaticism. Fortunes come and go easily for many cryptocurrency speculators, who often don’t understand the technologies underlying their investments. In contrast, Dogecoin.com makes no promises of grandeur. Opening in bold with “1 Dogecoin = 1 Dogecoin”, Dogecoin’s official site simply states, “Dogecoin sets itself apart from other digital currencies with an amazing, vibrant community made up of friendly folks just like you.” Born as a parody to Bitcoin in 2013, Dogecoin has and continues to grow from internet meme culture’s fertile grounds.

But if Doge’s fundamental value proposition is truly barren, how does it continue to climb the charts? Where is the “smart money,” and why aren’t they taking profits to reinvest in “real” projects? At the time of writing, Dogecoin is the fourth largest cryptocurrency by market cap. It has surpassed the leading oracle network Chainlink, the leading decentralized exchange Uniswap, and even the leading “Ethereum-killer” Cardano. With tens of billions of dollars invested in these crypto assets, Dogecoin’s success isn’t trivial. Rather, its massive capital inflows are drawing eyes.

On Tuesday, Galaxy Digital Research issued a report titled, “Dogecoin: The Most Honest Sh*tcoin.” Despite citing “zero development,” “no market infrastructure,” “barely any wallet software,” and the fact that “many exchanges still don’t support it,” the report acknowledges unique strengths possessed by Dogecoin’s rare breed, “…despite its deficiencies, Dogecoin has remarkably strong fundamentals and powerful forces supporting its rise: a genuine origin story, longevity, and a growing community of users who appear determined to meme a Shiba Inu-themed global currency into existence.”

Dogecoin traces its origins to Litecoin. In 2011, Litecoin forked from Bitcoin in an effort to provide faster and cheaper transactions while maintaining many of Bitcoin’s traits such as its proof-of-work mechanism and hard cap supply. Litecoin itself was forked numerous times, with one fork of a fork of a fork eventually resulting in Dogecoin. Like Litecoin, Dogecoin inherits many of Bitcoin’s core technologies while offering its own unique properties. Notably, Dogecoin transactions take only 1 minute to verify. In contrast, Litecoin takes about 2.5 minutes to verify transactions. Bitcoin transactions can take anywhere from 10 minutes to several hours, sometimes days, to confirm. While Bitcoin’s properties have attracted strong narratives for its use as a store of value, it remains a poor vehicle for day-to-day transactions. Dogecoin may prove itself fit to fill a niche for these types of payments because it is relatively quick, widely accepted across crypto communities, and satisfies needs for small but rapid daily transactions.

It is no secret that Elon Musk, CEO of Tesla and SpaceX, has played a pivotal role in Dogecoin’s recent growth. Renowned for his brazen sense of humor, Elon’s record for viral meme-inspiring tweets earned his candidacy and eventual status as “community-appointed CEO” for Dogecoin. The ensuing correlation between Elon’s tweets and Dogecoin’s price action demonstrates the power of Dogecoin’s community and value of network effects, illustrated by Metcalfe’s Law. Tech investor billionaire and outspoken crypto enthusiast Mark Cuban has joined chorus, tweeting, “As long as more companies take doge for products/services, then Doge can be a usable currency because it MAY hold its purchasing value better than a $ in your bank.”, adding, “…yes, a joke is now legit.” Consistent with his words, Cuban’s Dallas Mavericks began accepting DOGE as payment for tickets and merchandise online in early March.

On May 4th, leading crypto custodian and exchange Gemini (founded by the Winklevoss twins in 2014) announced it now supports Dogecoin. The blog post states, “Dogecoin is the people’s money. It’s organic, irreverent, and fun. It’s not forced on us by a government or some other central authority, it’s chosen by us, for us — by the people, for the people. Wow.” Strained as the non-satirical arguments for Doge may be, Gemini’s post raises considerable philosophical questions. “Yes, it’s a meme coin, but all money is a meme. And all money is both an idea and a matter of faith or belief in it.” Consistent with many pro-crypto arguments, it falls back to the fundamental supply and demand argument. “No one person, organization, or authority decides the value of a crypto – its value is determined by its supply and your demand for it. In Dogecoin’s case, its money supply is transparent, predictable, and disinflationary.”

Empowered by crypto, it is up to ordinary people to decide what money is to them. If the global financial system will one day operate predominantly on a decentralized monetary system, many ideas will rise and fall before then. In the meantime, the burden falls on investors to research and place their bets accordingly. Perhaps Musk said it best in his February Clubhouse interview. “Dogecoin was made as a joke to make fun of cryptocurrencies. But fate loves irony. The most ironic outcome would be that Dogecoin becomes the currency of Earth in the future.” If you want to see the next part of Elon’s Dogecoin saga unfold live, tune in to NBC’s Saturday Night Live May 8th. The Dogefather is hosting.

By Nathan Frankovitz

Dogecoin: “The People’s Crypto” Examined

Dogecoin Value Proposition

Dogecoin Value Proposition

In the wake of Robinhood and other stock brokerages putting a hold on purchases of GME, AMC, and other stocks, a new movement has been started to buy Dogecoin. The movement largely traces back to popular Twitter account @wsbchairman posting a tweet on January 27th saying “a lot of you are talking about Dogecoin? What’s that? A meme crypto?”

In many ways, a meme crypto is the perfect way of describing Dogecoin. While it may not have many fundamentals or active developer activity behind it, it certainly has a social movement behind it. And that social movement is currently being lead by Elon Musk, Gene Simmons, Soulja Boy, and a whole community of Reddit investors who have proven they are a force to be reckoned with when it comes to moving financial markets. Even well-respected crypto investors have started to chime in and accept the idea that Dogecoin could really become “the people’s crypto” because of the lack of involvement from hedge funds and traditional financial institutions, further contributing to the “people’s currency” narrative.

Could the prospects of a truly fair token distribution and grassroots investor growth be enough to outpace the growth of bluechip DeFi protocols with better fundamentals and real use cases and value accrual? It will ultimately be up to the market to determine, but it certainly doesn’t seem like a smart bet to gamble against Elon Musk and the growing prevalence of meme culture.

By Bradley Whitton

Dogecoin logo source: https://github.com/dogecoin/dogecoin

Crypto Likes the Stock: How Blockchain Empowers WallStreetBets to Trade “Stonks” on Their Own Terms

Wall Street Bets Finds Easy Solution to Censorship in Mirror Finance

Wall Street Bets Finds Easy Solution to Censorship in Mirror Finance

The market revolution surrounding WallStreetBets (WSB), Gamestop (GME), and electronic trading platforms Robinhood and TD Ameritrade is inspiring a renowned cry for financial freedom in traditional finance markets. The overarching realization many investors are experiencing is that the United States’ “free market” is not so free after all, as Robinhood and TD Ameritrade took actions to limit trading on GME and AMC to protect Wall Street hedge funds from collapsing. At the cost of small-scale investors, Wall Street’s vulnerabilities are being protected by the platforms originally designed to empower we the people, and we the people are furious. 

Crypto and blockchain-based solutions have quickly surfaced to quench the modern investor’s need for a censor-free, frictionless financial system. Mirror Finance is bridging the gap between Wall Street, everyday investors, and crypto, as this decentralized financial (DeFi) protocol gives barred investors a pathway toward true financial freedom. Mirror Finance is a DeFi protocol on the Terra blockchain that allows the creation, use and trading of synthetic assets known as Mirrored Assets (mAssets). mAssets are designed to mirror the price behavior of real-world assets on a blockchain, giving traders all over the world 24/7 access to financial markets without actually owning or transacting with real assets.

Crypto synthetic assets are blockchain-based financial instruments that combine derivative products like futures, options and swaps to imitate and track the value of any traditional asset, allowing for crypto integration with traditional finance. These crypto synthetics enable users to trade these mirrored-assets at their real-time value 24/7, 365 days a year regardless of stock market hours. Mirror brings the financial freedom that crypto offers to traditional finance, permitting fractional ownership, open access and freedom from censorship for everyday investors.

WallStreetBets investors looking for more exposure to WSB-pumped stocks that were censored by Robinhood and TD Ameritrade can regain their stance with these assets through synthetic replicas on Mirror’s protocol. 

The collusion between Wall Street and electronic trading platforms is awakening our society to the true need for decentralized finance. Inspired? So are we. We hope the capabilities that Mirror brings to the world will empower the finance community to continue bridging the gaps between traditional and decentralized finance to inspire the next frontier of financial services.

By Liam McDonald

Holochain gets HOT: Blockchain Momentum Update

What Worked

  • Doge (DOGE) has continued it’s run from last week reaching a height of 170% gain over 8 days before a pullback.

  • Holochain (HOT) is up 56% this week as one of the cheapest coins relative to Bitcoin on Binance.

Upcoming Catalysts

  • LTC- Global Litecoin Summit will be taking place in San Francisco on September 14th. Charlie Lee will be in attendance and speaking at the event.

  • ZCL- Anonymous Bitcoin will be forked from Zclassic on September 10th. Holders of Zclassic at the time of the fork will receive a 2:1 ratio of Anonymous Bitcoin.

  • WAVES- Waves decentralized exchange will be the next project to enable smart contracts on their platform September 10th.

  • Goldman Sachs Trading Desk- Goldman Sachs noted that the development of a Cryptocurrency Trading Desk was based on fake news. However, they are focusing on custody solutions for cryptocurrencies.

  • Mt Gox Bitcoin Whale- There has been a Bitcoin wallet with $844 Million in USD moving funds to exchanges. $100 Million worth of Bitcoin was moved to Binance and Bitfinex over a 10-day period before this week’s selloff occurred.

  • Volkswagen Using Iota DAG Technology- Volkswagen will be releasing a digital carpass in Q1 of 2019 to track data for evaluating car performance using Iota’s Tangle technology.

BTC Market Activity

We saw 4 rejections in Bitcoin from the $7400 price level before massive selling pressure on September 5th caused a 15% decline in price. This rapid selling occurred over a 24-hour period with Bitcoin finding support at $6300. The drop came after Bitcoin had been grinding higher over a 2-week period establishing that sellers are still in control almost 9 months into this bear market. Shorts on Bitfinex are back up near all-time highs after an initial jump of 50% last Saturday. The movement of over $100 Million in Bitcoin to exchanges from a Mt Gox wallet holding $844 Million caused concern days before the sell-off occurred. Focus is shifting back to the $5700-$6000 support zone with concerns Bitcoin could move into that range for a 7th retest in the last 8 months.

Technical Indicators

  • DOGE– Doge had a major breakout this week from a long-term down-sloping trendline. This 170% run-up occurred after it was listed on yahoo finance. It is worth noting that Doge has remained strong during the bitcoin sell-off this week.

  • XRP- Ripple has broken down from a symmetrical triangle that was forming on the 4-hr timeframe. Long-term support was tested for a 2nd time and held at 25 cents. 33 cents is the next level of resistance we are watching.

  • ADA- Cardano was rejected from the 10.8 cent price level 4 times before testing support at 8.5 cents for a 3rd time. It is living below this support now and if it fails to break back above this level, we are looking at the final line of support at 7.8 cents. There is the possibility that a double bottom is forming on the 4-hr time frame. A break above 9 cents would confirm this.

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